This copy is for your personal non-commercial use only. To order presentation-ready copies of Toronto Star content for distribution to colleagues, clients or customers, or inquire about permissions/licensing, please go to: www.TorontoStarReprints.com

Bitter taste of reader feedback over The Beer Store: Cohn

Judging by the head of foam overflowing from my inbox, politicians ignore Ontario’s nasty brew of anti-competitive behaviour at their peril.

The Ontario government unintentionally created a new underground economy for low-income people when it forced LCBO customers to return their wine bottles to a Beer Store to get their refunds. Many wine drinkers opt to dispose of their bottles in their blue bins; within hours the wine bottles are gone. (Dale Brazao / Toronto Star file photo)

One more kick at the (beer) can: After a couple of
holiday columns
on The Beer Store, it’s time to give readers their say.

Nothing fills my inbox faster than Ontario’s private beer monopoly and its government enablers. Many readers were stunned to discover that The Beer Store isn’t a government-owned operation but a virtual monopoly owned by three big foreign-owned brewers.

Judging by the head of foam overflowing from my inbox, politicians ignore this nasty brew of anti-competitive behaviour at their peril. As a public service to MPPs, here’s a free focus group sampling of reader reactions:

Why doesn’t the government-owned LCBO give The Beer Store a run for its money by carrying a broader selection? Currently, it limits itself to a mere 20-per-cent share of the market by selling mostly foreign and craft beer.

Tim Allman questioned why the LCBO only sells six-packs, noting that his local outlet stopped selling eight-packs of his favourite brew. Turns out the LCBO long ago acquiesced to the breweries on volume discounts.

Article Continued Below

LCBO spokesperson Heather MacGregor says restrictions were formalized in a “beer marketplace framework” in 2000. The Beer Store’s Jeff Newton notes the deal limiting the LCBO to six-packs was “facilitated” by the then-Tory government as a way to “codify and document” past practice. There is no expiry date.

Why would any government keep the LCBO tied down and its customers out of pocket? Readers tell me they sometimes see trays of 12 on display in big city LCBOS, yet must still pay twice the 6-pack price — not the cheaper 12-pack rate offered by The Beer Store. Only in cosy Ontario do governments facilitate such cascading collusion.

Why must LCBO customers drive across town with their
empty wine bottles
to collected deposit refunds from a dreary Beer Store? Why not force the world’s biggest booze retailer to do its own dirty (green) work? Many marvelled at the government’s unintentional creation of a new underground economy for low-income people fishing empties out of blue bins and piling them into shopping carts for refunds.

“There are many on our street in Riverdale who do not opt for the dank Beer Store experience. We put our empties in the blue box, and within hours they are gone. A whole subeconomy has grown,” writes Daniel Kushner. “Why drive to The Beer Store and then stand in line for ages to recoup a couple of bucks?”

Tony Peotto argues, “The waste of half a litre of fuel to return the empty 24, or a few wine bottles becomes nothing more than a fool’s errand, whatever the depth of your green convictions.”

Adds Dave Pratt: “If I’m returning a case of empties and want to purchase another, I am forced to wait in lineups behind people who sometimes have garbage bags full of cans and bottles that aren’t even there to buy beer! Try pulling off that stunt in a competitive environment!”

And this just in from David Crawford: “The Beer Store does NOT accept returned bottles at their newer upscale ‘Beer Boutiques.’ ” True enough. A spokesperson confirms that four of its stores do not accept empties “due to size constraints.”

Why is it so hard to fix this lopsided duopoly? There are no ideological or practical barriers to privatizing The Beer Store, because it’s already privately held. No one has to kill it off, or fire any unionized staff. All that’s needed is a regulatory tweak to allow competition.

The Beer Store “fails miserably in its mission of selling beer in a civilized manner,” John A. Edge fumes. “Why is it needed at all when beer could be sold in grocery supermarkets?”

Raffi Nacachian muses, “Hope one of the three leaders will show a spine and take this on.” A false hope — neither the New Democrats nor Liberals are interested in reform, just Tory Leader Tim Hudak.

Glenn Brown copied me on a letter to Premier Kathleen Wynne, asking why she defended The Beer Store in my pre-Christmas column: “With an election coming up this will influence my decision.”

Like many, Gord Leaver will stick with the LCBO as long as The Beer Store sticks it to him: “It is time to start a grass-roots movement to lobby the provincial government,” he concludes. “I nominate you as our leader. There is no hope with Wynne, and Hudak seems to be the best bet.”

Respectfully, thanks for the suggestion — and the feedback. If nominated, I will not serve.

Correction - January 30, 2014:
This article was edited from a previous version that misspelled Dave Pratt's surname.

Delivered dailyThe Morning Headlines Newsletter

The Toronto Star and thestar.com, each property of Toronto Star Newspapers Limited, One Yonge Street, 4th Floor, Toronto, ON, M5E 1E6. You can unsubscribe at any time. Please contact us or see our privacy policy for more information.

More from the Toronto Star & Partners

LOADING

Copyright owned or licensed by Toronto Star Newspapers Limited. All rights reserved. Republication or distribution of this content is expressly prohibited without the prior written consent of Toronto Star Newspapers Limited and/or its licensors. To order copies of Toronto Star articles, please go to: www.TorontoStarReprints.com